He tweeted: “Good luck to new Prime Minister Theresa May and Chancellor Phillip Hammond - they have my full support in the big challenge that lies ahead.”

The startling move sent out a strong message to Mrs May’s new government that she is now firmly in charge.

And experts said the move would delight pro-Leave Tory MPs furious with the Chancellor for his Project Fear scaremongering during the Referendum campaign.

His threat of a Brexit ‘Punishment’ Budget last month triggered an astonishing rebellion from 65 pro-Leave Tory MPs. And he enraged Cabinet colleagues by enlisting the support of the IMF and German Ministers to the Remain cause.

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It looks like Brexit DOES mean Brexit as incoming PM Theresa May appoints Boris Johnson Foreign Secretary in her new Cabinet

FAMILY AFFAIR

FROM GIDEON, TO No10 HOPEFUL, TO BACKBENCHER

MAY 23, 1971: Born Gideon Osborne in London to a Baronet father. He changed his name to George at 13 as he did not like his given name.2001: Elected as Tatton MP and rose swiftly to become Shadow Chief Secretary to the Treasury in 2004.2005: Michael Howard made him Shadow Chancellor aged 33 and he is dubbed “Boy George” by dismissive critics. But the nickname fades after fierce battles with Labour Chancellor Gordon Brown.2010: He pledges to be tough on the budget deficit as Chancellor in the new Tory government, far left.2012: His Budget is criticised and described as an “omnishambles” by Labour leader Ed Miliband.2016: Visits a new Crossrail station, left, in London, and gives his last Budget, second left, before new PM Theresa May, right, replaces him with Philip Hammond.

Mr Osborne’s axing was confirmed in a statement that announced Philip Hammond’s appointment as his successor.

The axing left the Chancellor’s allies reeling. Rupert Harrison, Mr Osborne’s former chief of staff, said: “It was an honour and a privilege to work for George Osborne – a great Chancellor who rescued the economy from one of its darkest moments.”

On Twitter, former Housing Minister Mark Prisk told Mr Osborne: “Thank you for steering this country out of financial ruin, after Labour.

Arch Brexiteer Andrew Bridgen added: “Theresa May’s decision to remove George Osborne gives me great confidence that she can make tough decisions, and in my opinion the right one.

“George Osborne had become toxic to a large part of the country.”

Mr Osborne had resigned himself to losing the Treasury post. But he told friends as late as Tuesday night that he was holding out for the expanded role of Trade Secretary to do a series of fresh new deals with the world as the UK leaves the EU.

What Mrs May would do with Mr Osborne once in power had been much anticipated

Theresa May and George Osborne have had a difficult relationship and repeatedly clashed behind the scenes. He sparked a Cabinet spat last year by pushing for students to be taken out of the net migration target – enraging Mrs May.

Friends of the new PM said she was used to Osborne allies openly briefing against her.

The Chancellor has helped slash the deficit by two-thirds – and oversee a booming jobs market.

But he will also be remembered for the 2012 pasty tax shambles, the tax credits fiasco and a March Budget that contained disability benefit cuts and a programme to turn schools into academies. Both these policies were ditched.